JXR (01951) has returned over 400 million to shareholders in the past 12 months, with multiple measures accelerating the implementation of shareholder returns.

Title context: JXR (01951) has returned over 400 million to shareholders in the past 12 months, with multiple measures accelerating the implementation of shareholder returns. Text: On October 2, an announcement on the "Progress of Implementation of the Shareholder Return Plan" published by JXR (01951), the largest integrated assisted reproductive service provider in China, showed that over the past 12 months, cumulative shareholder returns through dividends and buybacks totaled RMB 429 million (the same unit below). At the same time, due to solid cash flow and the view that the current price does not fully reflect intrinsic value, JXR will continue and expand buybacks in 2026. It is understood that recently JXR also issued a "holding-type real estate asset-backed special plan." Market participants interpreted this as meaning that through the implementation of "free cash flow - capital efficiency - shareholder returns," JXR will not only help build a long-term and stable shareholder return system, but also help promote the long-term steady development of its medical business and enhance its moat in assisted reproduction. Shareholder returns over the past 12 months have exceeded 400 million In March this year, JXR released its 2026-2028 shareholder return plan, clearly stating that it would return 50%-80% of annual adjusted EBITDA to shareholders and set a maximum share buyback authorization of RMB 300 million for the next 12 months. According to the progress announced this time, in the 12 months up to the date of this announcement, JXR has paid dividends of approximately RMB 100 million and repurchased 162,609,000 shares at a cost of approximately RMB 328.9 million, with cumulative shareholder returns reaching RMB 428.9 million. Industry participants believe that the company's stock return plan exceeded expectations, demonstrating the company's confidence in its development. However, JXR believes that the current price does not fully reflect the company's intrinsic value, and the company will continue to advance its shareholder return plan and fulfill its long-term commitment to enhancing shareholder returns. JXR also expects that after the share market price more fully reflects its intrinsic value, it will gradually increase cash dividend distributions for the fiscal years ending December 31, 2027 and 2028, with a target annual payout ratio of approximately 20% to 40% of that year's non-International Financial Reporting Standards adjusted EBITDA ("non-IFRS adjusted EBITDA"). For the six months ended June 30, 2026, adjusted EBITDA was RMB 603 million, so the calculated shareholder return amount is between RMB 120 million and RMB 240 million. REITS project implementation will also expand buyback efforts Before this announcement, on September 29, Shanghai Stock Exchange information showed that it had accepted the "JXR Holding-Type Real Estate Asset-Backed Special Plan," with a proposed issuance of RMB 1.93 billion. The plan manager is CICC, and the issuance will be carried out in two tranches. The first tranche is expected to be RMB 1.5 billion, and after deducting the self-held portion, net cash recovered is expected to be approximately RMB 1.2 billion. Based on data as of June 30, 2026, after completion of the transaction, the company's net debt/EBITDA will fall from approximately 2.8 times to approximately 0.9 times, with a significant deleveraging effect, which can enhance financial soundness and flexibility. This REITS is only for the property building itself, and the medical services and normal operations of Shenzhen Zhongshan Maternity and Child Health Hospital are completely unaffected. The implementation of the "holding-type real estate asset-backed special plan" also laid a certain foundation for buybacks. In this regard, industry participants said that since the beginning of this year, the reason JXR (01951.HK) has successively rolled out a combination of "revitalizing assets + enhancing shareholder returns" is mainly because of stable cash flow and steady operations. "Buybacks support valuation at the bottom, while dividends provide long-term holding returns. This not only helps build a long-term and stable shareholder return system, but also helps improve the capital structure and supports the long-term steady development of the medical business." Data shows that JXR's cash flow is approximately RMB 500 million. Regarding the specific approach to shareholder returns later, JXR said that when market value is far below book value, it will prioritize buybacks while maintaining stable cash flow dividends; after market value has recovered to a certain extent, it will gradually increase the dividend ratio and continue to strengthen shareholder returns. Recently, in order to increase the birth rate and respond to the rising infertility rate, from the national level to various provinces and cities, support for building a fertility-friendly society has been successively increased, and multiple measures encouraging childbirth, including assisted reproduction, have been introduced one after another. As a leader in assisted reproduction, JXR's long-term development is viewed favorably by the market.